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Women’s labor force participation rate has increased sharply over the last two decades. The
increase has been particularly dramatic for married women with young children suggesting that women are
spending less time out of the labor force for child-bearing and rearing. Using the relatively detailed
information available in the National Longitudinal Survey of Youth, this paper explores women’s decisions
to return to work within one year of the birth of their first child, focusing particularly on the effect of child
care costs. Consistent with economic theory, women who face lower child care costs are more likely to
return to work after giving birth as are women with higher potential wages and lower family income from
other sources.